Traffic fuels and legislation future prospects. Tuukka Hartikka, Neste Oyj
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1 Traffic fuels and legislation future prospects Tuukka Hartikka, Neste Oyj
2 Table of contents 1. Global challenges 2. Renewable fuels 3. EU directives 4. Local challenges & Solutions 5. Summary 2
3 Challenges 24 September
4 The world is constantly on the move People and goods need to stay on the move How much more can the nature take? We need cleaner traffic and transport solutions 4
5 Biofuels are part of the solution Combat climate change and reduce traffic and transportation related emissions (fulfilling bio mandates) Reduce dependency on fossil oil and imported energy Improve and safeguard security of energy supply 5
6 Renewable fuels
7 Targets set for renewable fuel use Finland 20% by 2020 Canada 2% biomandate at Federal level EU 10% by 2020 (RED) 6 % reduction in GHG emissions by 2020 (FQD) USA 20% by 2022 (RFS2) 7
8 Raw materials Biofuels in traffic Blended with gasoline Blended with diesel Ethanol Can be added to fossil fuel up to 0 10 % FAME = Biodiesel Can be added to fossil diesel up to 0 7% HVO = Renewable diesel Can be added to fossil diesel up to 0 100% Corn, cereal, sugars Vegetable oils, animal fats 8
9 HVO - Fully compatible with fossil diesel Biodiesel (FAME / RME) Fossil diesel Renewable diesel (HVO) e.g. NEXBTL Raw material Vegetable oils and animal fats (mainly rapeseed oil) Crude oil (mineral oil) Flexible mix of raw materials (vegetable oils and waste fats) Technology Esterification Traditional refining Hydrotreating End product Ester-based, conventional biodiesel Hydrocarbon (gasoline, jet fuel, diesel) Bio-based hydrocarbon (renewable diesel, jet fuel, bionaphta, biopropane) Chemical composition O II H 3 C-O-C-R C n H 2n+2 + aromatics C n H 2n+2 FAME = Fatty Acid Methyl Ester, conventional biodiesel RME = Rapeseed Methyl Ester, conventional biodiesel HVO = Hydrotreated Vegetable Oil, advanced biofuel i.e. renewable fuel 9
10 EU directives
11 Alternative fuels infra directive AFI 2014/94/EU Targets reduction in dependence on crude oil -60 % GHG by 2050 union-wide mobility with alternative fuels cost efficiency actions 2020-> to meet 2050 targets Fuels & energies mentioned synthetic, paraffinic, biofuels, LPG, CNG, LNG, CBG, LBG, H2, electricity, etc. in principle technically neutral, open for all new solutions Support mechanisms national policies for market development achieve enough alternative fuel vehicles incentives, tax incentives 11
12 Current situation of alternative fuels HVO (in any proportion): Suitable for all diesel vehicles FAME (100%): Suitable to some specific models Electric vehicles: ~0.05% of all passenger cars in EU E85 (FFV vehicles): <0.5% of all passenger cars in EU ED95 vehicles: Some thousand Hydrogen vehicles: < 1000 globally Natural gas vehicles: <0.5% of all vehicles in EU LPG vehicles: ~2.5% of all vehicles in EU
13 Fuel labelling, AFI directive article 7 The main purpose is to avoid misfueling Existing fuels need to be labelled (eg. Gasoline, E85, LPG) Scheme shall be open to add new fuels later Labeling covers all vehicle types (cars, trucks, 2- wheelers, vessels) Labeling has to be based on graphical symbols meaning that alphabets are not allowed There will be one graphical symbol for each fuel type (eg. E85 vehicle: E5, E10, (E20/25) and E85) 13
14 Which pistol do you choose? 14
15 Example of innovative solution tank ring, card-free payment Theft & misfueling prevention Accurate consumption records 15
16 Comparing alternatives is not easy Fuel s price at the pump is only a part of the story Companies needs to evaluate the options by looking at the total cost of ownership (TCO) Fuel s energy content, engine efficiency, influence on maintenance intervals, repairs, heating, cold properties, vehicle depreciation, Adblue cost Fuel 1 Fuel 2 16
17 Some forerunners in the industry 17
18 Summary Fuels and vehicles are changing => high quality is very important Bio-legislation, emission standards, fuel consumption standards Alternatives are growing, complexity increases More options to choose from Price Cost Value Value is what matters, but can be influenced by costs and price
19 Thank you.
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